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Poker tax hike bill vetoed
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Posted on Dec 14 2006
Acting Gov. Timothy P. Villagomez yesterday vetoed a bill to raise taxes on poker winnings over a technicality.
Villagomez disapproved House Bill 15-85 due to a concern that the word “operator” was not clearly defined.
“While I am not entirely opposed to the intent of this bill, I am concerned with the language of the bill. The bill fails to define the word “operator” which can be construed as meaning the player of the game or the machine owner. I believe that either an alternative word should be used or the word should be clearly defined,” he said.
Authored by Vice Speaker Justo S. Quitugua, House Bill 15-85 intended to enhance revenue collection by increasing the jackpot tax and taxing winnings between $99 and $999.
The legislation proposed to tax jackpot winnings of $1,000 and over by 30 percent and to earmark 10 percent of these taxes for the Public School System. The bill also sought to start taxing winnings between $99 and $999 by 25 percent.
On Nov. 14, 2006, then acting Gov. Felix T. Mendiola returned the bill to the Legislature without any action. He asked lawmakers to further consider the measure’s potential impact on the poker industry.
“While there is no doubt of the need to enhance our government’s revenues, the taxes to be assessed under the bill should be very clear for ease of implementation and enforcement,” he said in a letter to acting Senate President Jude U. Hofschneider and House Speaker Oscar M. Babauta.
He also urged the respective committees of each house of the Legislature to consult with the Department of Finance to improve the bill’s enabling provisions.
However, Speaker Babauta asked that the bill be sent back to the Governor’s Office for his action before returning the bill to the Legislature. [I][B](Agnes E. Donato)[/B][/I]
